PPI dropped for ten straight months, dragged by low commodity prices. On the other hand, housing loans climbed 2.2% YOY in 4Q (3Q: 2.4% YOY) which was the slowest pace since Dec 2011.

The prints are largely in line with expectation that the Japanese economy may slip into contraction again in 4Q.

Trade Idea With the decisive break of the weekly neck line at 115/114 I will be looking to fade any retest of this area from below, targeting a test of the 110 ahead of 105 as the ultimate downside objective for this move.